In technology analysis Shared by popular cryptocurrency analyst Josh Olszewicz on social media platform Olszewicz, who leverages both the Ichimoku Cloud and Fibonacci extensions, outlines a scenario in which a break of this key resistance level could push Bitcoin toward a target of $91,500.
Here's how Bitcoin could rise to $91,500
The analysis uses the Ichimoku Cloud, a complex technical indicator that provides insights into market momentum, trend direction, and areas of potential support and resistance over different time frames. Currently, Bitcoin price action is depicted as being in an upward phase, located above the cloud. This position above the cloud is traditionally seen as a bullish signal, indicating a strong uptrend with strong support levels forming from the lower border of the cloud.
In an Ichimoku setup, the Conversion Line (Tenkan-sen) and Base Line (Kijun-sen) intersect occasionally, providing buy or sell signals based on their intersection relative to the cloud. As of the last chart, the conversion line has recently crossed the baseline, reinforcing the bullish outlook portrayed by the cloud position.
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To add another layer to the technical narrative, Fibonacci extension levels have been drawn from the significant low at $56,485.87 to the high, providing potential targets and resistance levels. The 0.5 Fib extension level is set at $63,727.40 and has already been crossed by the current price path.
The 1.0 extension finds itself at $71,897.29, which is closely in line with the $72,000 pivot level indicated by the analyst. Furthermore, the 1.618 extension at $83,456.87 represents a profitable first price target, while the final 2.0 extension looms at $91,513.53.
The key observation is the volume profile, which shows a downward trend in trading volume. This decreasing volume can often indicate a period of accumulation, as less selling pressure allows prices to stabilize and perhaps build a base for an upward breakout. The downward volume trend line supports the consolidation phase we have seen in recent months, indicating that a sharp move may be imminent once the buildup ends.
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Olszewicz's emphatic remark, “BTC: When this baby hits $72k, you're going to see some serious shit,” underscores the high risks associated with this resistance level. This is not just a technical observation but a signal to the market that once the $72,000 level is broken decisively, a path to much higher levels becomes increasingly likely.
Such a breakout would likely activate a flurry of trading activity, as both retail and institutional investors may see it as confirmation of an ongoing uptrend, which could push the price towards the $91,500 mark indicated by the Fibonacci 2.0 extension.
At press time, Bitcoin was trading at $67,783.
Featured image created with DALL·E, chart from TradingView.com
